Impact of foreign direct investment on Indian economy- service sector

No Thumbnail Available
Kapoor, Vishal
Issue Date
MSc in International Accounting and Finance
Dublin Business School
Items in Esource are protected by copyright. Previously published items are made available in accordance with the copyright policy of the publisher/copyright holder.
This study aims at investigating the impact of FDI on the service sector in the Indian economy. The main objectives of this research are directed towards assessing the impact of FDI on the service sector by exploring the different factors which have major implications on the FDI encouragement in the service sector of India. For this purpose, primary data has been gathered with the use of interviews which have been conducted with 10 economists in India. The interview data has been analysed using thematic data analysis technique to arrive at the useful; findings pertaining to the main objectives of the study. The key findings of this research reflect that FDI has a positive impact on the development of service sector in India. The findings of this research reflect that FDI is essential for enhancing the domestic capital, productivity along with the employment rate of the country. In addition to this, the findings from interview data reflect that FDI helps in increasing the ratio of total employment with the help of providing employment to people in different sectors. Overall, the research study concludes that Increased investment in FDI has resulted in the improvement in infrastructure, as well as the financial services more specifically in banking sector have witnessed significant growth. Thus, FDI has contributed towards accelerating the economic development in the Indian economy and more specifically in the service sector.